Fitch revises Broadcom view to negative

Fitch Ratings said it revised the outlook on Broadcom Inc. to negative from stable, citing the company’s planned acquisition of Symantec’s enterprise security business for $10.7 billion.

The agency also affirmed Broadcom’s BBB- ratings.

“The ratings and outlook reflect Fitch's expectation that Broadcom will remain acquisitive and uncertainty regarding the company’s deleveraging roadmap, particularly amid a weakening demand environment and meaningful uncertainty around the future of trade between the U.S. and China,” said Fitch in a press release.

Fitch said it believes the company has the capacity to repay the debt and sustain acquisitions, though it said deal activity over the last two years has changed from Broadcom’s model for acquisitions.

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